Foxconn Receiving 5-8 Million Faulty iPhones, Could Lose $1.6 Billion

Apple iPhone manufacturer Foxconn is estimated to be receiving back 5-8 million iPhones because of faulty hardware.

According to China Business, the manufacturer is facing returns for numerous unspecified defects. The cost of each repair is estimated at $200 per smartphone for a total loss of $1.6 billion.

At this time, it has not been revealed which iPhone model or models are affected by the recall.

Foxconn produces various iPhone models at the same time and that mass production of multiple devices has led to various problems in the past. Foxconn has been forced to shut down production over a lack of hardware supply, Foxconn employee strikes, and faulty product creation.

Some analysts believe Foxconn could be deep into mass production on the iPhone 5 smartphone. If mass production on the new line is underway, the company is remaining tight-lipped about any issues that might exist with that devices production.

Analysts have been predicting that Apple iPhone shipments could fall below March quarter estimates, and production issues at Foxconn could explain why those shipments are likely to suffer. Apple is also expected to be suffering through lower than expected demand for the iPhone 5.

Apple will release its Q2 financials on Tuesday, a report that will be closely examined to determine the state of Apple’s flagship smartphone line, tablets, and Macs.

With the Samsung Galaxy S4 and HTC One both likely to chip away at Apple’s iPhone line even further, the company could really use a big win with the release of the iPhone 5S or iPhone 6.

Do you think Apple is losing its grip on the smartphone industry?